A recent civil engineering graduate wishes to buy a new home costing \($200\),000, make a 5 percent down payment, and finance the remaining \($190\),000. The rate quoted for a conventional 30-year loan is 6.4495 percent interest with 1.625 points and no other closing costs.

a. What is the amount of the monthly payment if the points are paid at the time of closing and not added to the loan? Calculate this using both Excel® and one of the Web-based calculators.

b. What is the amount of the monthly payment if the points are added to the loan? Calculate this using both Excel® and one of the Web-based calculators.

c. If, immediately after the sixtieth payment (5 years), the graduate is asked to move, what will be the unpaid balance on the loan with the points added to the loan?

d. Determine the effective annual interest rate for the loan with the points added to the loan.

e. Use the additive approach to determine the APR using both Excel® and one of the Web based calculators.